Source: CNBC
Summary
Etsy has sold Depop to Fast Retailing, the parent company of Uniqlo, for $200 million. The deal comes nearly five years after Etsy purchased Depop for $1.62 billion. The sale is a significant markdown from the original purchase price. Etsy acquired Depop in 2021, when secondhand clothing apps were gaining popularity during the pandemic. Depop was founded in 2011 and allows users to buy and sell clothing and other items.
Our Reading
The launch follows a familiar script.
Etsy sells Depop for a fraction of its original purchase price. Depop, a secondhand clothing app, was acquired by Etsy in 2021 for $1.62 billion. Now, it’s being sold to Fast Retailing for $200 million. This is what happens when hype cycles meet harsh realities. Depop’s value is now worth about 12% of its original price tag. Guess that’s what happens when the pandemic-induced thrift shopping craze wears off.
Author: Evan Null
